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Military car loans: Drive away with a deal Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial choices by offering you interactive financial calculators and tools as well as publishing original and impartial content, by enabling users to conduct research and evaluate information at no cost - so you can make your financial decisions with confidence. Bankrate has agreements with issuers such as, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make money The products that appear on this website are provided by companies that pay us. This compensation could affect how and when products are featured on this site, including for instance, the order in which they appear in the listing categories and other categories, unless prohibited by law for our mortgage or home equity products, as well as other products for home loans. But this compensation does affect the information we publish, or the reviews that appear on this website. We do not cover the vast array of companies or financial offerings that could be open to you.



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2 min read Published 19 July 2022
Written by Allison Martin Written by

Allison Martin's career began more than 10 years prior to that as a digital content strategist, and she's since been featured in a variety of top financial publications such as The Wall Street Journal, MSN Money, MoneyTalksNews , Investopedia, Experian and Credit.com.







Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain confidence to manage their finances through providing clear, well-researched facts that break down complex topics into manageable bites.









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When it comes to buying a car, U.S. military members have an advantage. There are many lenders that offer military-specific auto loans that work just like normal auto loans, but with better loan conditions. If you're in the military or have retired from active duty, there's a good chance you can be eligible for a military auto loan with a . Six advantages from military vehicle loans Military car loans are superior to conventional car loans in several ways. They are easier to get approved. Car loans are generally available even to service members with credit scores to qualify for conventional car loans. The approval process is typically faster as well. Lower interest rates. Lenders usually offer reduced interest rates for military loans like discounts in the range of 0.25 percent to 0.50 percent from their usual rates. A lower rate can save you a great deal of money in interest payments for the duration that you take out the loan. No prepayment penalty. If you repay a military car loan in advance, your lender does not have to charge you an interest, like the one that is included with regular car loans. Reduced down payment. It is possible to pay less upfront for military auto loans and certain programs that offer no-money-down loans. This allows you to save up enough to purchase a car, but paying less upfront means you'll pay higher interest in the long term. Longer repayment period. Regular auto loans typically have 36-, 48or 60-month terms with shorter term loans with lower interest rates. Military auto loans have longer terms for repayment periods. Legal security: The Servicemembers Civil Relief Act (SCRA) offers active-duty service members security for installment contracts, such as auto loans. This includes preventing creditors from repossessing a vehicle in case of breach of contract, without an order from a court. The SCRA also regulates the interest rates that are charged on auto loans which were issued prior to joining the service. Drawbacks of military car loans The same risks that apply to all auto loans apply for military car loans and, most important the possibility that you might not be able to pay your installment payments. If you default on your loan can affect your credit score, making it difficult to borrow money later on. The ease with which military members can get a car loan makes it even more important to be cautious and consider the purchase. The loan could be more affordable due to your status as a military member however, the other expenses of owning a car -- maintenance and insurance, parking charges and fuel -- likely aren't much less. What are the requirements to be eligible for a military-owned car loan Every lender has its own set of qualification criteria. You'll typically need the following to be qualified for a car loan: Proof of your military status, such as your active-duty military identification card or military or discharge papers if are a former service member. Your contact information, including a local address of the place you are currently stationed. Contact information for family members who will be able to manage matters pertaining to the loan if you are deployed abroad. The bottom line Military car loans offer a range of benefits, including low interest costs, less down payment requirements, as well as federal protections. However that, even with a federal loan there are risk of borrowing exist, such the possibility that you won't be capable of making the repayments. This is why you should still shop around when you're ready to take out an auto loan to ensure that you get the most favorable rate for your needs. You should consider checking rates with military credit unions, such as and , as they offer auto loans with competitive terms to active and retired soldiers.


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Written by

Allison Martin's career began more than 10 years prior to that as a digital content strategist. Since then, she's been published in several leading financial media outlets including The Wall Street Journal, MSN Money, MoneyTalksNews , Investopedia, Experian and Credit.com.



The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping their readers gain the confidence to control their finances through providing precise, well-studied information that breaks down complicated topics into digestible chunks.






Auto loans editor




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